Establishes New York state renewable electric generation pilot programs to authorize the development of up to three hundred megawatts renewable electric capacity statewide, in order to stimulate the growth of clean, affordable and reliable sources of energy and to foster new partnerships between electric corporations, energy producers and energy customers in this state.

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S1061-2011 Actions

• Jan 4, 2012: REFERRED TO ENERGY AND TELECOMMUNICATIONS
• Jan 5, 2011: REFERRED TO ENERGY AND TELECOMMUNICATIONS

S1061-2011 Memo

BILL NUMBER:S1061

TITLE OF BILL:
An act
to amend the public service law, in relation to New York state renewable
electric generation pilot programs

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of the bill is to require the Public Service Commission
(PSC) to establish a New York State (NYS) Renewable Electric
Generation Pilot Program in order to stimulate the growth of
renewable electric capacity statewide and foster new partnerships
between electric corporations, energy producers and energy customers
in NYS.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill requires the PSC to establish the NYS renewable
electric generation pilot program to authorize the development of up
to 300 megawatts (MW) of renewable electric capacity statewide, in
order to stimulate the growth of clean affordable and reliable energy
sources and foster partnerships between the utilities, power
producers and energy customers.

This section requires the PSC to implement a pilot program that
directs electric corporations to build renewable energy facilities
which are financed under terms of a commission order. The order will
authorize electric corporations to recover capital and operating
costs in their rate base and will allow them to earn a reasonable
return over a period of time. In order to qualify for these projects
a utility must provide the Commission with specific information
regarding the pilot project including: a detailed description and
economic evaluation of the proposed investment; a discussion of cost
benefits, risks, an rate implications to customers; evidence of
reasonable efforts to involve local businesses; evidence of
compliance with applicable emission limitations;
and, copies of customers contracts.

This section also authorizes the renewable generation facilities
eligible to be constructed and financed under this pilot program to
include electric generation through the use of the following
technologies: solar, wind, photovoltaics, tidal, geothermal and fuel
cells.
These facilities must be manufactured installed and operated according
to applicable standards; must connect to the electric system and
operate in parallel with an electric
corporation's transmission and distribution facilities; must operate
in compliance with PSC standards and requirements; and, must be
located within the state.

This section also authorizes electric corporations to own an equity
interest in these facilities and allows partnerships between
independent power producers, developers, and/or customer-owned or
leased generators.

Section 2 of the bill requires the PSC to provide an annual report on
the progress of the pilot project on or before June first to the


Governor, temporary president of the Senate, Speaker of the Assembly,
minority leader of the Senate and minority leader of the Assembly.

JUSTIFICATION:
As part of the deregulation of the power industry in NYS, utilities
were required or agreed to divest themselves of most of their
generation facilities. Deregulation was intended to create a more
robust retail power market that would encourage competition and lower
energy prices.

Since deregulation, world economic events and concern over global
warming have caused governments worldwide to implement public
policies that hasten the growth of renewable energy generation. In an
effort to establish energy independence from imported fossil fuels
and to create green jobs, NYS has established a Renewable Portfolio
Standard (RPS) which is a policy that seeks to increase the
proportion of renewable electricity used by retail customers. To
accomplish this, the PSC has instituted a charge on all private
utility customers' monthly electric bills. Yet, public monies will
only go so far to reach this goal. Private industry capital is needed
to truly encourage viable renewable power sources in the State.

PRIOR LEGISLATIVE HISTORY:
2009-10:  S.6722/A.3738A - Referred to Energy & Telecommunications

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately provided that
180 days after the enactment date, the PSC shall have a competitive
process in place that shall be open to all electric corporations.

S1061-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    1061

                         2011-2012 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 5, 2011
                                 ___________

  Introduced  by  Sens. PARKER, PERKINS -- read twice and ordered printed,
    and when printed to be committed to the Committee on Energy and  Tele-
    communications

  AN  ACT  to  amend the public service law, in relation to New York state
    renewable electric generation pilot programs

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  The public service law is amended by adding a new section
  73 to read as follows:

    S 73. NEW YORK STATE RENEWABLE ELECTRIC GENERATION PILOT PROGRAMS.  1.
  THE  COMMISSION SHALL ESTABLISH NEW YORK STATE RENEWABLE ELECTRIC GENER-
  ATION PILOT PROGRAMS TO AUTHORIZE THE DEVELOPMENT OF UP TO THREE HUNDRED
  MEGAWATTS OF RENEWABLE ELECTRIC CAPACITY STATEWIDE, IN ORDER  TO  STIMU-
  LATE THE GROWTH OF CLEAN, AFFORDABLE, AND RELIABLE SOURCES OF ENERGY AND
  TO FOSTER NEW PARTNERSHIPS BETWEEN ELECTRIC CORPORATIONS, ENERGY PRODUC-
  ERS AND ENERGY CUSTOMERS IN NEW YORK STATE.
    2.  (A)  THE  COMMISSION SHALL OVERSEE THE IMPLEMENTATION OF THE PILOT
  PROGRAMS AND SHALL DIRECT ELECTRIC CORPORATIONS TO BUILD OR CAUSE TO  BE
  BUILT RENEWABLE ENERGY FACILITIES TO BE FINANCED UNDER TERMS ESTABLISHED
  THROUGH  AN  ORDER  OF  THE COMMISSION WHICH SHALL AUTHORIZE CAPITAL AND
  OPERATING COSTS TO BE RECOVERED IN THE CORPORATIONS  RATE  BASE  AND  TO
  EARN  A  REASONABLE RETURN OVER A PERIOD TO BE DETERMINED BY THE COMMIS-
  SION, PROVIDED THAT THE  CORPORATION  SHALL,  AT  MINIMUM,  PROVIDE  THE
  COMMISSION WITH THE FOLLOWING:

    (I)  A  DETAILED  DESCRIPTION  AND ECONOMIC EVALUATION OF THE PROPOSED
  INVESTMENT;
    (II) A DISCUSSION OF THE COSTS, BENEFITS, AND RISKS OF  THE  PROPOSAL,
  INCLUDING  AN  ANALYSIS OF THE COSTS, BENEFITS, AND RATE IMPLICATIONS TO
  THE PARTICIPATING CUSTOMERS, TO THE COMPANY'S DEFAULT SERVICE CUSTOMERS,
  AND TO THE UTILITY'S DISTRIBUTION CUSTOMERS;

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD00883-01-1

 S. 1061                             2

    (III) A DESCRIPTION OF ANY EQUIPMENT OR  INSTALLATION  SPECIFICATIONS,
  SOLICITATIONS,  AND PROCUREMENTS IT HAS IMPLEMENTED OR INTENDS TO IMPLE-
  MENT;
    (IV)  A  SHOWING  THAT IT HAS MADE REASONABLE EFFORTS TO INVOLVE LOCAL
  BUSINESSES IN ITS PROGRAM;
    (V) EVIDENCE OF COMPLIANCE WITH ALL APPLICABLE  EMISSION  LIMITATIONS;
  AND
    (VI)  A COPY OF ANY CUSTOMER CONTRACTS OR AGREEMENTS TO BE EXECUTED AS
  PART OF THE PROGRAM.
    (B) RENEWABLE GENERATION FACILITIES ELIGIBLE  TO  BE  CONSTRUCTED  AND
  FINANCED  UNDER  THE  NEW YORK STATE RENEWABLE ELECTRIC GENERATION PILOT
  PROGRAMS SHALL:

    (I) GENERATE ELECTRICITY THROUGH USE OF  THE  FOLLOWING  TECHNOLOGIES:

  SOLAR; WIND; PHOTOVOLTAICS; TIDAL; GEOTHERMAL; AND FUEL CELLS; OR
    (II)  GENERATE ELECTRICITY THROUGH LOW-IMPACT, RUN-OF-RIVER HYDROELEC-
  TRIC ELECTRIC GENERATING EQUIPMENT WITH CAPACITY UP TO THIRTY  MEGAWATTS
  WITH NO NEW STORAGE IMPOUNDMENT;
    (III)  BE  MANUFACTURED,  INSTALLED  AND  OPERATED  IN ACCORDANCE WITH
  APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS;
    (IV) CONNECT TO THE ELECTRIC SYSTEM AND OPERATED IN PARALLEL  WITH  AN
  ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES;
    (V)  OPERATE  IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS ESTAB-
  LISHED BY THE COMMISSION; AND
    (VI) BE LOCATED WITHIN THE STATE, INCLUDING FACILITIES THAT CONSIST OF
  CUSTOMER-OWNED OR LEASED GENERATORS.
    (C) AUTHORIZE ELECTRIC CORPORATIONS TO OWN AN EQUITY INTEREST IN  SUCH
  FACILITIES  AND  ALLOW  PARTNERSHIPS  WITH  INDEPENDENT POWER PRODUCERS,
  DEVELOPERS, AND/OR CUSTOMER-OWNED OR LEASED GENERATORS.
    S 2. The public service commission shall provide an annual  report  on
  or before the first day of June to the governor, the temporary president
  of  the  senate, the speaker of the assembly, the minority leader of the
  senate, and the minority leader of the assembly reporting  the  progress
  of  their  efforts and the effects of the program on the environment and
  public. Such report shall identify each facility  participating  in  the
  pilot  project  and shall include, but not be limited to, information on
  each energy source or sources used for generation at such facility;  the
  sum  capacity, in megawatts, of all electrical generating equipment used
  by the facility; the date the facility will begin or has begun  generat-
  ing electricity; and the number and category of customer-owned or leased
  generators.
    S  3.  This act shall take effect immediately; provided, however, that
  not later than the one hundred eightieth day after this act  shall  have
  become  a  law,  the  public  service  commission  shall have in place a
  competitive process which shall be open to electric corporations.